Opinion
No. 40164
Decided March 15, 1967.
Taxation — Exemptions — Section 5709.12, Revised Code — Real property owned by nonprofit charitable corporation — Used as residence for elderly people — Not exempt although rent below cost.
APPEAL from the Board of Tax Appeals.
The appellant, Lutheran Senior City, Inc., is a nonprofit corporation incorporated under the laws of Ohio. This corporation is sponsored by the Lutheran Welfare League of Central Ohio, a social welfare arm of Lutheran churches in central Ohio. The purpose of appellant is "to provide facilities and services especially designed to meet the spiritual, physical, social, and psychological needs of the aged and contribute to their health, security, happiness and usefulness in longer living." The services provided are based on human need without regard to creed, color, or race.
The real property owned by appellant is improved with a building to provide services for 285 residents. The majority of the rooms are single. There are some two-room units for husband and wife. In the care and nursing area, there are single rooms and two-bed and four-bed wards. There are no self-contained units. All dining, except for bedfast residents, is in a central dining area. In addition, there are a main lounge which serves also as a church, rooms for administrative staff, hobby and recreation rooms, library, doctor's office, social worker's office, beauty shop, barbershop, etc.
The admitting age is 62, but the average age is much higher. If able, the resident pays a $350 processing fee, but no founders fee, and no property is turned over to appellant. The ambulatory resident pays a monthly fee of $190. In the care and nursing area, the fee is higher. The facility is staffed with paid employees, but much work is done by volunteer help. The directors and officers serve without pay. An auxiliary raises money to aid in subsidizing residents who cannot pay the standard fee. The operating costs and mortgage payments have been exceeding the income.
Appellant made application for exemption of its real property from taxation and for remission of taxes by reason of its being used exclusively for charitable purposes, within the meaning of Section 5709.12, Revised Code, which provides that "property belonging to institutions that is used exclusively for charitable purposes shall be exempt from taxation."
The Board of Tax Appeals denied the application.
An appeal from the decision of the board brings the cause to this court for review.
Mr. Luther M. Long, for appellant.
Mr. C. Howard Johnson, prosecuting attorney, and Mr. William W. Holmes, for Auditor of Franklin County.
The operative facts in the instant case are substantially the same as those in the case of Philada Home Fund v. Board of Tax Appeals, 5 Ohio St.2d 135. The decision of the Board of Tax Appeals is affirmed on authority of that case.
Decision affirmed.
ZIMMERMAN, MATTHIAS, HERBERT and BROWN, JJ., concur.
TAFT, C.J., O'NEILL and SCHNEIDER, JJ., dissent.